models of external trade relations

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Last updated 4:38 AM on 9/27/26
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5 Terms

1
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Single market participation

→ principle of homogeneity Art 1

→ non-European countries as EU rule-takers

→ need for border controls

→ less comprehensive and systematic alignment (can be static) with internal market rules

→ not in customs union

→ requires rules of origin to prevent trade deflection

2
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Free trade agreements

→ free movement internally

→ no custom duties or QRs

→ border controls for regulatory purposes

→ different external tariffs

→ requires rules of origin

→ host state control applies

eg Canada, Japan: no tariffs, no mutual recognition

3
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Customs union (not EU)

→ does’t cover all goods (eg agricultural)

→ third country must align to CU

→ border controls for regulatory purposes

→ common external tariff

→ no tariffs between parties

→ no deflection of trade

eg Turkey: common tariff alignment, limited to industrial goods, Turkey follows EU trade policy but has no decisional power

4
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World Trade Organisation based

→ applicable with most states where no FTA

→ tariffs and custom duties may be (un)bound

→ states retain regulatory control over imports

→ QRs prohibited

→ primarily rely on non-discrimination logic

→ host country control

→ possibility for unilateral equivalence

5
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Unilateral EU measures

→ apply where there’s no WTO membership

→ no trade agreement

→ trade governed solely by EU rules